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A company has fixed costs of $900 and a per-unit contribution margin of $3. Which of the following statements is true? ______ A) Once the

A company has fixed costs of $900 and a per-unit contribution margin of $3. Which of the following statements is true? ______

A) Once the break-even point is reached; the company will increase income at the rate of $3 per unit.

B) Each unit "contributes" $3 toward covering the fixed costs of $900.

C) Each unit "contributes" $3 toward covering the fixed costs of $900 and once the break-even point is reached, the company will increase income at the rate of $3 per unit.

D) The firm will definitely lose money in this situation.

E) The situation described is not possible and there must be an error.

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